Shareholders' equity
Common shares 25,000
Retained earnings 2,300 *
Total shareholders' equity 27,300
Total liabilities and _______
Total assets $56,200 Shareholders' equity $56,200
* $2,300= $0 + $12,500 (net income) - $10,200
Net income = $45,600 - $7,500 - $19,400 - $5,000 - $1,200 = $12,500
Diff: 3 Type: ES
L.O.: 1-3
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
5) Choose the appropriate definition for the terms below.
a. a business owned by a single owner
b. a statement summarizing the revenues and expenses for a given period
c. resources that provide future economic benefits to a business
d. claims by outsiders on the resources of a business
e. revenues less expenses
f. a business owned by shareholders
g. shows the net change in the cash account for a given period
h. a formal listing of the accounting equation on a specified date
________ 1. corporation
________ 2. cash flow statement
________ 3. income statement